1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Pepsi [2]
3 years ago
5

Bennett Co. has a potential new project that is expected to generate annual revenues of $262,100, with variable costs of $144,00

0, and fixed costs of $61,300. To finance the new project, the company will need to issue new debt that will have an annual interest expense of $24,500. The annual depreciation is $25,200 and the tax rate is 34 percent. What is the annual operating cash flow?
Business
1 answer:
swat323 years ago
7 0

Answer:

Operating cash flow= $29,886

Explanation:

Giving the following information:

Sales= $262,100

Total variable cost= $144,000

Total fixed costs= $61,300.

Annual interest expense of $24,500. The annual depreciation is $25,200 and the tax rate is 34 percent.

<u>We need to determine the operating cash flow:</u>

Sales= 262,100

Total variable cost= (144,000)

Contribution margin= 118,100

Total fixed costs= (61,300)

Depreciation= (25,200)

Interest= (24,500)

EBIT= 7,100

Tax= (7,100*0.34)= (2,414)

Depreciation= 25,200

Operating cash flow= 29,886

You might be interested in
James was a partner in a large firm. He died unexpectedly. His son, Frank, wanted to take over for his father in the partnership
Mashutka [201]

Answer:

B - Frank is entitled to the value in the partnership, but not to become a full partner.

5 0
3 years ago
Edmund must pay $6 each for punk rock video cassettes, ????. Edmund is paid $24 per sack for accepting garbage, ????, and his re
Viefleur [7K]

Answer: Edmond's budget line equation is 6V - 24G = 48

Explanation: A Budget Line is also called as Budget Constraint. It shows all the combinations of two commodities that a consumer can afford at given market prices and within the particular income level.

Let Punk video cassette = V

Garbage = G

Therefore, Edmond's budget line equation will be a combination of the punk video cassette less the garbage he is paid for equal to his allowances

6V - 24G = 48

5 0
3 years ago
Luxury motors introduced a new car to its already popular sedan line. The new car sold very well in its first year, so the compa
kiruha [24]
The company experienced cannibalization from the new car from its existing product line.
5 0
2 years ago
If the marginal propensity to consume is equal to 0.85, then a $500 increase in disposable income leads to a:
AlekseyPX

The question is incomplete. The complete question is stated below.

If the marginal propensity to consume is equal to 0.85, then a $500 increase in disposable income leads to a:

a. $400 increase in consumption spending

b. $75 increase in consumption spending

c. $425 increase in personal saving

d. $75 increase in personal saving

Answer:

If a $500 increase causes an increase of $425 in consumer spending, the rest of $75 is the increase in personal saving. Thus, option D is the correct answer.

Explanation:

The marginal propensity to consume or MPC is the percentage of the additional income that will be used for consumption spending. It is a concept that is used to calculate how much of an increase in income will be used in consumption and saving. The formula to calculate MPC is,

MPC = Change in consumer spending / Change in income

0.85 = Change in consumer spending / 500

500 * 0.85 = Change in consumer spending

Change in consumer spending = $425

If a $500 increase causes an increase of $425 in consumer spending, the rest of $75 is the increase in personal saving.

8 0
3 years ago
A company purchased new equipment for $48,000. The company paid cash for the equipment. Other costs associated with the equipmen
brilliants [131]

Answer:

The cost recorded will be $53,400

Explanation:

In this question, we are to give the value of the amount recorded as the cost of the new equipment.

By simply doing some additions, we will be okay.

mathematically, this would be

Cost of equipment recorded = cost of equipment + transportation cost + sales tax + installation cost = 48,00 + 1,200 + 2,500 + 1,700 = $53,400

4 0
3 years ago
Other questions:
  • Job-order costing would be more likely to be used than process costing in situations where many different products or services a
    13·1 answer
  • The income statement of Sarasota Company is shown below. SARASOTA COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
    15·1 answer
  • The first thing you must consider in any type of communication is
    6·2 answers
  • Julius asks Rachel if she would like to sell her boat. Rachel privately has no interest in selling her boat, and believes that J
    13·1 answer
  • Ursa Major Solar (UMS) is configuring the lead conversion process. Which two factors should UMS consider before setting up the p
    8·1 answer
  • On theShopping Listsheet, check all the formulas. Cells to check are filled with the light orange color.Most of them need to be
    9·1 answer
  • there is agrowing demand of architects and engineers in devloping countries like nepal justify this statement​
    5·1 answer
  • When does a conflict of interest occur???
    14·1 answer
  • The trial balance for Pioneer Advertising Inc. is shown below.
    6·1 answer
  • Annual dividends of ATTA Corp grew from $0.96 in 2005 to $1.76 in 2017. What was the annual growth rate
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!